According to the "Self-Correcting Mechanism" in the AD-AS Framework,________

question 33

Multiple Choice

According to the "self-correcting mechanism" in the AD-AS framework,________.

• A)the aggregate demand curve shifts up or down as needed to bring the economy to full employment
• B)the inflation rate changes as needed to move the economy along the short-run aggregate supply curve until output is at potential output
• C)the long-run aggregate supply curve shifts until it intersects both the aggregate demand and short-run aggregate supply curves at a single point
• D)inflation and expected inflation are unaffected by deviations of output from potential output
• E)none of the above

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Definitions:

Product Reliability

The likelihood of a product to perform its required functions under stated conditions for a specified period.

Cultural Differences

Refers to the diversity in beliefs, values, habits, and practices among people from different countries and backgrounds, often considered in global operations.

Experience Differentiation

A marketing and business strategy that focuses on creating unique customer experiences to distinguish a brand or product in the market.

Strategy

A comprehensive plan or set of actions designed to achieve long-term goals or satisfy decision-making under conditions of uncertainty.